Karora Resources Inc (KRR.CA) Stock Fundamental Analysis
TSX:KRR - CA48575L2066 - Common Stock
6.7 CAD
+0.16 (+2.45%)
KRR gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 795 industry peers in the Metals & Mining industry. KRR gets an excellent profitability rating and is at the same time showing great financial health properties. KRR is growing strongly while it also seems undervalued. This is an interesting combination With these ratings, KRR could be worth investigating further for value and growth and quality investing!.
1. Profitability
1.1 Basic Checks
KRR had positive earnings in the past year.
In the past year KRR had a positive cash flow from operations.
Of the past 5 years KRR 4 years were profitable.
KRR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KRR's Return On Assets of 2.29% is amongst the best of the industry. KRR outperforms 89.24% of its industry peers.
Looking at the Return On Equity, with a value of 3.78%, KRR belongs to the top of the industry, outperforming 89.86% of the companies in the same industry.
KRR's Return On Invested Capital of 5.99% is amongst the best of the industry. KRR outperforms 94.49% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KRR is significantly below the industry average of 11.87%.
The last Return On Invested Capital (5.99%) for KRR is above the 3 year average (5.90%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.29% | ||
| ROE | 3.78% | ||
| ROIC | 5.99% |
ROA(3y)3.18%
ROA(5y)6.17%
ROE(3y)5.4%
ROE(5y)10.25%
ROIC(3y)5.9%
ROIC(5y)6.85%
1.3 Margins
KRR has a Profit Margin of 3.22%. This is amongst the best in the industry. KRR outperforms 92.12% of its industry peers.
KRR's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 14.25%, KRR belongs to the top of the industry, outperforming 92.62% of the companies in the same industry.
KRR's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 40.26%, KRR belongs to the best of the industry, outperforming 94.87% of the companies in the same industry.
In the last couple of years the Gross Margin of KRR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.25% | ||
| PM (TTM) | 3.22% | ||
| GM | 40.26% |
OM growth 3Y-21.9%
OM growth 5Y4.75%
PM growth 3Y-61.26%
PM growth 5YN/A
GM growth 3Y-5.96%
GM growth 5Y7.74%
2. Health
2.1 Basic Checks
KRR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for KRR has been increased compared to 1 year ago.
The number of shares outstanding for KRR has been increased compared to 5 years ago.
The debt/assets ratio for KRR is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.00 indicates that KRR is not in any danger for bankruptcy at the moment.
KRR has a Altman-Z score of 4.00. This is in the better half of the industry: KRR outperforms 64.71% of its industry peers.
KRR has a debt to FCF ratio of 1.63. This is a very positive value and a sign of high solvency as it would only need 1.63 years to pay back of all of its debts.
KRR has a better Debt to FCF ratio (1.63) than 94.87% of its industry peers.
A Debt/Equity ratio of 0.15 indicates that KRR is not too dependend on debt financing.
KRR has a worse Debt to Equity ratio (0.15) than 68.96% of its industry peers.
Although KRR does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.63 | ||
| Altman-Z | 4 |
ROIC/WACC0.76
WACC7.85%
2.3 Liquidity
KRR has a Current Ratio of 1.79. This is a normal value and indicates that KRR is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.79, KRR is in line with its industry, outperforming 46.81% of the companies in the same industry.
A Quick Ratio of 1.33 indicates that KRR should not have too much problems paying its short term obligations.
KRR's Quick ratio of 1.33 is in line compared to the rest of the industry. KRR outperforms 44.56% of its industry peers.
The current and quick ratio evaluation for KRR is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.79 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 66.67% over the past year.
KRR shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -56.65% yearly.
Looking at the last year, KRR shows a very strong growth in Revenue. The Revenue has grown by 24.81%.
Measured over the past years, KRR shows a very strong growth in Revenue. The Revenue has been growing by 26.45% on average per year.
EPS 1Y (TTM)66.67%
EPS 3Y-56.65%
EPS 5YN/A
EPS Q2Q%133.33%
Revenue 1Y (TTM)24.81%
Revenue growth 3Y20.3%
Revenue growth 5Y26.45%
Sales Q2Q%19.35%
3.2 Future
Based on estimates for the next years, KRR will show a very strong growth in Earnings Per Share. The EPS will grow by 60.52% on average per year.
KRR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.87% yearly.
EPS Next Y193.38%
EPS Next 2Y102.98%
EPS Next 3Y60.52%
EPS Next 5YN/A
Revenue Next Year38.22%
Revenue Next 2Y24.68%
Revenue Next 3Y19.87%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
KRR is valuated quite expensively with a Price/Earnings ratio of 26.80.
89.99% of the companies in the same industry are more expensive than KRR, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.06. KRR is around the same levels.
KRR is valuated cheaply with a Price/Forward Earnings ratio of 7.74.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KRR indicates a rather cheap valuation: KRR is cheaper than 93.49% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.69, KRR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.8 | ||
| Fwd PE | 7.74 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KRR indicates a rather cheap valuation: KRR is cheaper than 91.24% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, KRR is valued cheaply inside the industry as 93.37% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.36 | ||
| EV/EBITDA | 8.95 |
4.3 Compensation for Growth
KRR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
KRR has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as KRR's earnings are expected to grow with 60.52% in the coming years.
PEG (NY)0.14
PEG (5Y)N/A
EPS Next 2Y102.98%
EPS Next 3Y60.52%
5. Dividend
5.1 Amount
KRR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:KRR (8/2/2024, 7:00:00 PM)
6.7
+0.16 (+2.45%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners17.39%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.20B
Analysts75.56
Price Target6.36 (-5.07%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)94.48%
Min EPS beat(2)-57.57%
Max EPS beat(2)246.54%
EPS beat(4)2
Avg EPS beat(4)51.36%
Min EPS beat(4)-57.57%
Max EPS beat(4)246.54%
EPS beat(8)2
Avg EPS beat(8)5.83%
EPS beat(12)2
Avg EPS beat(12)-5.08%
EPS beat(16)5
Avg EPS beat(16)7.49%
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)1.06%
EPS NQ rev (1m)400%
EPS NQ rev (3m)0%
EPS NY rev (1m)22%
EPS NY rev (3m)101.99%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)17.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.8 | ||
| Fwd PE | 7.74 | ||
| P/S | 2.76 | ||
| P/FCF | 30.36 | ||
| P/OCF | 7.76 | ||
| P/B | 3.23 | ||
| P/tB | 3.23 | ||
| EV/EBITDA | 8.95 |
EPS(TTM)0.25
EY3.73%
EPS(NY)0.87
Fwd EY12.91%
FCF(TTM)0.22
FCFY3.29%
OCF(TTM)0.86
OCFY12.89%
SpS2.43
BVpS2.07
TBVpS2.07
PEG (NY)0.14
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.29% | ||
| ROE | 3.78% | ||
| ROCE | 11.55% | ||
| ROIC | 5.99% | ||
| ROICexc | 7.19% | ||
| ROICexgc | 7.19% | ||
| OM | 14.25% | ||
| PM (TTM) | 3.22% | ||
| GM | 40.26% | ||
| FCFM | 9.07% |
ROA(3y)3.18%
ROA(5y)6.17%
ROE(3y)5.4%
ROE(5y)10.25%
ROIC(3y)5.9%
ROIC(5y)6.85%
ROICexc(3y)7.5%
ROICexc(5y)9.01%
ROICexgc(3y)7.5%
ROICexgc(5y)9.01%
ROCE(3y)11.36%
ROCE(5y)13.19%
ROICexcg growth 3Y-26.23%
ROICexcg growth 5Y-24.41%
ROICexc growth 3Y-26.23%
ROICexc growth 5Y-24.41%
OM growth 3Y-21.9%
OM growth 5Y4.75%
PM growth 3Y-61.26%
PM growth 5YN/A
GM growth 3Y-5.96%
GM growth 5Y7.74%
F-Score7
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.63 | ||
| Debt/EBITDA | 0.41 | ||
| Cap/Depr | 166.97% | ||
| Cap/Sales | 26.43% | ||
| Interest Coverage | 14.17 | ||
| Cash Conversion | 118.04% | ||
| Profit Quality | 282.01% | ||
| Current Ratio | 1.79 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 4 |
F-Score7
WACC7.85%
ROIC/WACC0.76
Cap/Depr(3y)256.17%
Cap/Depr(5y)245.72%
Cap/Sales(3y)37.86%
Cap/Sales(5y)30.56%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)66.67%
EPS 3Y-56.65%
EPS 5YN/A
EPS Q2Q%133.33%
EPS Next Y193.38%
EPS Next 2Y102.98%
EPS Next 3Y60.52%
EPS Next 5YN/A
Revenue 1Y (TTM)24.81%
Revenue growth 3Y20.3%
Revenue growth 5Y26.45%
Sales Q2Q%19.35%
Revenue Next Year38.22%
Revenue Next 2Y24.68%
Revenue Next 3Y19.87%
Revenue Next 5YN/A
EBIT growth 1Y58.24%
EBIT growth 3Y-6.04%
EBIT growth 5Y32.45%
EBIT Next Year524.63%
EBIT Next 3Y106.32%
EBIT Next 5YN/A
FCF growth 1Y2845.97%
FCF growth 3Y-12.98%
FCF growth 5YN/A
OCF growth 1Y54.53%
OCF growth 3Y13.34%
OCF growth 5YN/A